Northern Cyprus Investment Property

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haventaclue

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We have put a deposit on an apartment in Northern Cyprus but just wondering if anyone has any advice. We are looking it from the point of view that Turkey are about to enter the EU and it would be a good place to buy and for a spanking new development the price seems to be very good. We haven't visited but we know that the developers are Irish and it is a UK construction company. We also know of the proposed developments in the area which include Marina, Golf Club, 5*Hotel and other apartments.

We have ascertained that there is full planning for the apartments and that the nearby Ercan airport is to be upgraded.

We have been told not to expect rental from the property but that we should make an excellent return on sale in a few years.

So that is the Agent's spiel, what else should we be looking at. We are buying through an Irish agent who are currently over there checking things out.

Any other tips of what we should ask when they come back. I know everywhere is a gamble and am not exactly the gambling type.

Thanks in anticipation
 
haventaclue said:
We have been told not to expect rental from the property but that we should make an excellent return on sale in a few years.
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The first thing that strikes me is if no one wants to rent it who will want to buy it :confused:

haventaclue said:
I know everywhere is a gamble and am not exactly the gambling type.
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If your not a gambler why gamble on a place that could throw serious title deed issues up further along the line.

http://www.aboutnorthcyprus.com/index.php/feature/m/title-deeds-in-northern-cyprus/

I should say I know nothing about Northern Cyprus just giving you something to think about.
 
Northern Cyprus is difficult to get to, maybe easier now with the border restrictions, but no direct flights from Ireland, also title is the major issue, there are about 4 different types of title, for pre & post 1974 when the Turkish invasion, in short some of the title documents relate to land grabbed by the Turks and given to their settlers, in recent times the International Court of Human Rights (think it was them) presided over a case and deemed that the land bought by foreign buyer was illegal as the title belonged to a southern cypriot who was forced to leave.

I would be wary of the title, thats why the prices in N Cyprus are a fraction of those on the southern side. What type of title does it have ? Do a google search for the types of Title Deeds and then check what your appartment has, to see if they are safe.

It is unlikely that Turkey will be allowed to join the EU whilst they occupy a member country illegially, and since the refermation in Southern cyprus decided not to unite the island, then it will still be outside the EU. Remember that the EU does not recognise Nth Cyprus, and also for a member to join all member states must approve them, and do you think Southern Cyprus will vote for Turkey to join whilst they still occupy 20/30% of their island ?
 
haventaclue said:
We have put a deposit on an apartment in Northern Cyprus but just wondering if anyone has any advice. We are looking it from the point of view that Turkey are about to enter the EU and it would be a good place to buy and for a spanking new development the price seems to be very good. We haven't visited but we know that the developers are Irish and it is a UK construction company. We also know of the proposed developments in the area which include Marina, Golf Club, 5*Hotel and other apartments.

We have ascertained that there is full planning for the apartments and that the nearby Ercan airport is to be upgraded.

We have been told not to expect rental from the property but that we should make an excellent return on sale in a few years.

So that is the Agent's spiel, what else should we be looking at. We are buying through an Irish agent who are currently over there checking things out.

Any other tips of what we should ask when they come back. I know everywhere is a gamble and am not exactly the gambling type.
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Listen to Cloughy. Forget material details of the property, Price Rentals does it have a pool etc etc. The property must be built on Pre 74 Exchange Land. Otherwise you stand a chance of the Greek Cypriot who previously owned that land or a relative of his claiming ownership thus meaning you will own nothing and will be powerless to stop him doing anything he wants with your property. Google the case of Linda & David Orams who brought in Northern Cyprus. Frightening. Land Title shoudl be your first enquiry when buying overseas property. Hopefully as the builders are irish they will have know not to build on land other than exchange land. There are 8 types of land title in Norwthern Cyrus it can get very very messy. Agents who tell you other types of land title are safe are in it for the money in my opinion. I hope you have the remianing funds in cash to pay for your property. If you havent your next job is to get a bank to lend on it. WOuld be interested to hear how you get on. I hope you dont get stung.
 
Thank you for your replies, it has made me look at the whole bigger picture and it looks like it all needs a rethink:eek: Our deposit is refundable thank God.
 
my son has just bought in northern cyprus he went out checked out the area and title, he is buying from an Irish company, he seems to have done his homework and is happy with place, only time will tell, this is the web site www.vasiliaview.com
 
Marcecie thanks for your post because this the same development we have put deposit on. Maybe you could PM me if you have any further details.

Many thanks.
 
Marcecie said:
my son has just bought in northern cyprus he went out checked out the area and title, he is buying from an Irish company, he seems to have done his homework and is happy with place, only time will tell, this is the web site [broken link removed]
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had a look at that site, their treatment of the title issues is as follows
Title deeds
You need to be careful when buying property in Northern Cyprus that you fully understand the different types of title deeds. The Vasilia View title deeds are “?????”, which are recognised ?????????

Why have they left question marks where information should be?
I'd be very wary.
 
Thanks for pointing that out. I hadn't had a chance to look at the site and it doesnt give that detail in the brochure. Definetly a ???? for them.
 
Investors in foreign property should be aware of the following:
1. Rental income stated as guaranteed may not be realised. The property is increased by the guarantee so in effect they are giving you back your money.
2. You will be liable to tax on the profit on foreign rental income in Ireland and you may also be liable to tax on foreign property. 3. When you sell the property you will be liable to CGT in Ireland and may be liable to similar tax in foreign country.
4. There may be problems with currency fluctuations
5. Is there a double taxation agreement with Ireland? If there is you may be able to off set the liability in foreign juristiction against the liability in Ireland. If not you will be liable in both juristictions.
6. You may have to do two computations in relation to your tax affairs. One for the Irish Authorities the other for foreign authorities. Remember it is up to you to make the necessary returns.
7. Any advise you get, get in writing. Ask them what qualification they have to give this advise. Are they tax expert in this area etc.
8. Ask about Inheritance rights. Can you leave the property to whoever you like. What taxes are payable?
9. Is there a viable selling market with the local population or will you have to sell to foreigners
​


From Revenue
http://www.revenue.ie/leaflets/it70.htm#19
How are foreign rents taxed?

In general, income from foreign property is computed on the full amount of the income arising, irrespective of whether the income has or will be received in the State. In the case of foreign rental income this income is charged under Case III of Schedule D and the same deductions and allowances are available as if the income had been received in the State. Deductions are also normally available in respect of such income for sums in respect of foreign tax paid. This income should be included in an individual’s tax return on the Foreign Income panel.

These rules do not apply to a person who is not domiciled in the State or who is an Irish citizen not ordinarily resident in the State. In such cases, income tax is computed on the full amount of the actual sums received in the State from such remittances, etc. without any deduction or relief given.

From Revenue website as at 1/1/06
New treaties with Argentina, Egypt, Kuwait, Malta, Morocco, Singapore, Tunisia, Turkey and Ukraine are being negotiated

Tax Treaties
[broken link removed]


[broken link removed]
 
i have just looked at that web site and do not see any ???????? perhaps you need to use refresh button
 
haventaclue said:
We have put a deposit on an apartment in Northern Cyprus..

..for a spanking new development the price seems to be very good.

..We haven't visited..

.. We have been told not to expect rental from the property but that we should make an excellent return on sale in a few years..

.. I know everywhere is a gamble and am not exactly the gambling type..
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I was going to post a detailed reply.. but now I'm not even sure I know where to start with this baffling approach to investing large sums of money............

............stunning that "adults" actually consider things like this. :rolleyes:
 
cappamj said:
i have just looked at that web site and do not see any ???????? perhaps you need to use refresh button
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they must have updated it , it wasnt completed when i checked it first.
 
haventaclue said:
Marcecie thanks for your post because this the same development we have put deposit on. Maybe you could PM me if you have any further details.

Many thanks.
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I also bought a property at Vasilia View a few months ago. But I travelled out there and did a lot of research before hand. You need to know what you are getting into - especially the title deed. There is another development beside this one that is a bit cheaper but the deeds are not exchange title. I preferred to pay a bit extra for this one and get the good deeds.

Just to give you a bit more info about this particular one:
I met one of the Irish developers out there (I think its a joint Irish/UK project) there so at least I know who im dealing with. The contract itself has stipulations like compensation payments if the work is delayed etc. so fairly happy to date.

Speaking to the local agents over there this particular development is 'more spacious and exclusive' (I think they mean the electric gates.) than a lot of the others and walking distance from the new golf course. They think it will be fairly easy to rent because of the golf course, but only in about 18-24 months time. But you never know with agents so time will tell. I'll let you know if I rent it!

But one thing to bear in mind over there, the standard of workmanship is a bit lower than for example in Spain. Its ok but you dont tend to get top of the range finishing and fixtures and fittings etc.

The site itself is sloped so all the apartments have views of the sea even at the back but I dont think you can see the golf course from them as there are trees between the development and the golf course. We managed to get a tour of the golf course when we were there. They have fully completed 9 of the 18 holes and allmost finished the other 9. Its a top course but its going to be expensive to get membership. They've released a small number of memberships at st£1200 joining fees and st£1000 per year and some people were saying the price would increase quickly.

The main problem I see with northern Cyprus is the lack of direct flights. Does anyone know if this will be changing in the future? I think if they got the likes of Ryanair flying in there the prices would explode!
 
I have been told that budget flights would eventually operate. How far from Larnaca.

Thanks for the info, looks like we well may be neighbours.

Did you buy Block B.

As far as I know Block A is sold and B is the one that is on market for now but what about the rest. Just wonder when it will be officially finished per the plans.

Anyway got loads of food for thought before purchase.
 
Dodgy! Who owns the land/property is my main question.

I know at least two people who lost flats in '74. Legally they still own them so will be chasing them fairly soon.

OP... EA says not to expect rent...? Who the hell will buy then?
 
just regards flights, I think it is unlikely that budget airlines will fly to Cyprus, due to the flight time and the fact that budget airlines want to make as many trips per day as possible, Cyprus is 4.5/5 hours flight, so max you could do is 2 flights at a push per day, but this would require crew changes etc. so don't think it would be financially viable, and given the package holidays a lot of the seats on scheduled flights are actually sold to the travel comps.
 
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